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Darden Restaurants (Darden Restaurants) Cyclically Adjusted PS Ratio : 2.05 (As of Apr. 27, 2024)


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What is Darden Restaurants Cyclically Adjusted PS Ratio?

As of today (2024-04-27), Darden Restaurants's current share price is $156.10. Darden Restaurants's Cyclically Adjusted Revenue per Share for the quarter that ended in Feb. 2024 was $76.32. Darden Restaurants's Cyclically Adjusted PS Ratio for today is 2.05.

The historical rank and industry rank for Darden Restaurants's Cyclically Adjusted PS Ratio or its related term are showing as below:

DRI' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.66   Med: 1.7   Max: 2.6
Current: 2.05

During the past years, Darden Restaurants's highest Cyclically Adjusted PS Ratio was 2.60. The lowest was 0.66. And the median was 1.70.

DRI's Cyclically Adjusted PS Ratio is ranked worse than
82.57% of 241 companies
in the Restaurants industry
Industry Median: 0.79 vs DRI: 2.05

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

Darden Restaurants's adjusted revenue per share data for the three months ended in Feb. 2024 was $24.708. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is $76.32 for the trailing ten years ended in Feb. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Darden Restaurants Cyclically Adjusted PS Ratio Historical Data

The historical data trend for Darden Restaurants's Cyclically Adjusted PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Darden Restaurants Cyclically Adjusted PS Ratio Chart

Darden Restaurants Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.02 1.32 2.38 1.84 2.16

Darden Restaurants Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.04 2.16 2.08 2.07 2.24

Competitive Comparison of Darden Restaurants's Cyclically Adjusted PS Ratio

For the Restaurants subindustry, Darden Restaurants's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Darden Restaurants's Cyclically Adjusted PS Ratio Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Darden Restaurants's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where Darden Restaurants's Cyclically Adjusted PS Ratio falls into.



Darden Restaurants Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

Darden Restaurants's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=156.10/76.32
=2.05

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Darden Restaurants's Cyclically Adjusted Revenue per Share for the quarter that ended in Feb. 2024 is calculated as:

For example, Darden Restaurants's adjusted Revenue per Share data for the three months ended in Feb. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Feb. 2024 (Change)*Current CPI (Feb. 2024)
=24.708/129.4194*129.4194
=24.708

Current CPI (Feb. 2024) = 129.4194.

Darden Restaurants Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201405 12.305 100.373 15.866
201408 12.071 100.352 15.567
201411 12.208 99.635 15.857
201502 13.640 99.032 17.825
201505 14.617 100.333 18.855
201508 13.047 100.548 16.793
201511 12.385 100.135 16.007
201602 14.277 100.040 18.470
201605 13.942 101.355 17.802
201608 13.531 101.617 17.233
201611 13.151 101.829 16.714
201702 14.922 102.779 18.790
201705 15.281 103.256 19.153
201708 15.209 103.587 19.002
201711 14.992 104.072 18.643
201802 16.932 105.052 20.859
201805 16.978 106.148 20.700
201808 16.386 106.383 19.934
201811 15.687 106.338 19.092
201902 17.972 106.649 21.809
201905 17.861 108.048 21.394
201908 17.126 108.245 20.476
201911 16.624 108.519 19.826
202002 19.108 109.139 22.659
202005 10.202 108.175 12.206
202008 11.668 109.662 13.770
202011 12.597 109.793 14.849
202102 13.129 110.968 15.312
202105 17.176 113.576 19.572
202108 17.509 115.421 19.633
202111 17.411 117.269 19.215
202202 19.102 119.703 20.653
202205 20.707 123.323 21.731
202208 19.743 124.958 20.448
202211 20.199 125.607 20.812
202302 22.744 126.928 23.191
202305 22.697 128.314 22.892
202308 22.382 129.538 22.362
202311 22.577 129.548 22.555
202402 24.708 129.419 24.708

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Darden Restaurants  (NYSE:DRI) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


Darden Restaurants Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of Darden Restaurants's Cyclically Adjusted PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Darden Restaurants (Darden Restaurants) Business Description

Traded in Other Exchanges
Address
1000 Darden Center Drive, Orlando, FL, USA, 32837
Darden Restaurants is the largest restaurant operator in the U.S. full-service space, with consolidated revenue of $10.5 billion in fiscal 2023 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 10 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, and The Capital Burger. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2023, the company operated 1,914 restaurants in the U.S.
Executives
John W. Madonna officer: SVP, Corporate Controller 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Douglas J. Milanes officer: SVP, Chief Supply Chain Ofcr 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Melvin John Martin officer: President, SRG 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Sarah H. King officer: SVP, Chief HR Officer 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Susan M. Connelly officer: SVP, Chief Comm & PA Officer 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Lee Eugene I Jr officer: President, Speciality Rest Grp 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Rajesh Vennam officer: SVP, CFO and Treasurer 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Ricardo Cardenas officer: SVP Chief Strategy Officer 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Matthew R Broad officer: SVP General Counsel C/O DARDEN RESTAURANTS, INC., 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Todd Burrowes officer: President, LongHorn Steakhouse 150 WEST CHURCH AVENUE, MARYVILLE TN 37801
Daniel J. Kiernan officer: President, Olive Garden 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
William S Simon director 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Nana Mensah director 1301 AVENUE OF THE AMERICAS, NEW YORK NY 10019
Richard L. Renninger officer: SVP, Chief Development Officer 1000 DARDEN CENTER DRIVE, ORLANDO FL 32837
Timothy J Wilmott director C/O PENN NATIONAL GAMING, INC., 825 BERKSHIRE BLVD., SUITE 200, WYOMISSING PA 19610

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